Index drops to negative 10.5, 17th negative reading in 19 months

  • Philadelphia Fed manufacturing gauge drops to negative 10.5 in December
  • 17th negative reading in the past 19 months
  • Barometer on new orders sharply declines to negative 25.6
  • Six-month business outlook improves to 12.1, highest reading since July
  • Weakness in manufacturing indicated by regional and national indexes
  • Stocks set to open higher, 10-year Treasury yield down to 3.84%

The Philadelphia Fed manufacturing gauge fell to negative 10.5 in December, marking the 17th negative reading in the past 19 months. The barometer on new orders dropped sharply to negative 25.6, while the shipments index remained in contraction territory at negative 10.8. However, the six-month business outlook improved to 12.1, the highest reading since July. These regional and national indexes suggest further weakness in manufacturing. In related news, the Empire State Index, a measure of factory activity in New York State, also declined in December. Despite this, stocks were set to open higher and the 10-year Treasury yield was down to 3.84% in early morning trading.

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Factuality Level: 8
Justification: The article provides specific data from the Philadelphia Fed about regional business activity, including the gauge of regional business activity falling to negative 10.5 in December. It also mentions economists’ expectations and provides details about the barometer on new orders and the shipments index. The article also mentions the Empire State Index and the national ISM factory index to provide context. The market reaction is also mentioned. Overall, the article provides factual information with specific data points and context.

Noise Level: 3
Justification: The article provides relevant information about the Philadelphia Fed’s gauge of regional business activity and its implications for the manufacturing sector. It includes key details such as the barometer on new orders and the shipments index. However, it lacks in-depth analysis, scientific rigor, and actionable insights. The article also includes unrelated information about stock market reactions and bond yields, which is not directly related to the main topic.

Financial Relevance: Yes
Financial Markets Impacted: The article provides information on the Philadelphia Fed index, which is a regional manufacturing gauge. This can impact financial markets as it gives insights into the health of the manufacturing sector.

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the Philadelphia Fed index and its impact on financial markets, indicating financial relevance. However, there is no mention of any extreme event.

Reported publicly: www.marketwatch.com